Dedicare (DEDI) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 declined 12.1% year-over-year to SEK 460.9 million, with EBITA down 72.5% to SEK 11.2 million; adjusted EBITA was SEK 19.0 million, reflecting a challenging market, especially in Sweden and Norway.

• For Jan–Sep 2024, net sales fell 11.7% to SEK 1,330.7 million, and EBITA dropped to SEK 49.8 million; adjusted EBITA was SEK 60.5 million.

• Cost savings and restructuring measures were implemented, with full impact expected in Q4; new CEO and management changes occurred in Q3.

Financial highlights

• Q3 2024 EBITA margin was 2.4% (4.1% adjusted), down from 7.7% last year; profit after financial items was SEK 8.9 million (SEK 37.2 million in Q3 2023).

• Jan–Sep 2024 EBITA margin was 3.7% (4.5% adjusted), compared to 8.0% last year; profit for the period was SEK 32.7 million (SEK 76.7 million in 2023).

• Basic EPS for Q3 was SEK 0.72 (3.05); for Jan–Sep, SEK 3.42 (8.02).

• Cash flow from operating activities in Q3 was SEK 24.6 million (38.3); cash and cash equivalents at period end were SEK 130.1 million (145.0).

Outlook and guidance

• No clear signs of improvement in the Swedish market; competition in Norway expected to remain intense.

• Cost base and organization have been adapted to current market conditions; focus remains on sales, operational efficiency, and gaining market share.

• Long-term demand for healthcare staffing expected to grow due to demographic trends.